Investing in Gold – One of the World’s Most Precious Commodities

People have been investing in gold since ancient humans first discovered the valuable metal. Unlike most investments, gold saw a 470% increase in value from 2001 to 2011, a feat that no other investment, except maybe silver, can even begin to claim, but why does investing in commodities like gold draw in so many people each year? It’s quite simple. Gold, the most precious of all metals, is the world’s most popular investment. It’s recognized around the world as a source of value and currencies are backed by it across the planet. The dollar bill wouldn’t be worth what it is without it. Buying gold is one way to protect oneself from political and economic upheaval, inflation, social unrest, war, and currency failure, because gold will always be recognized as a currency, even if the dollar bill one day is not.

Gold is at an all-time high, which means it’s not exactly the ideal time to buy, but inflation will soon pick up once again, meaning that the current gold prices could go up even more. With food and gas prices going up, investing in commodities has become something the everyday person can do by going to the local pawn shop. Like other commodities, how much gold costs is ultimately affected by supply and demand. The more people want to invest in gold, the higher the price, but speculation does play a part. But gold is ideal for anyone wanting to make an investment but worried about the stock market. Gold almost always does well and, even if the value depreciates slightly, it will always go back up. It’s also easy to invest because you don’t need to purchase gold bricks to do it. Collecting scrap jewelry, tangled gold chains, broken clasps, and gold coins could add up to a nice sum when traded in at shops that buy gold with cash.

When investing in gold, serious investors should consider gold equities. Rather than owning the gold physically, investors can buy into gold and precious metal companies like Avino Silver and Gold Mines Ltd., Claude Resources Inc., and Paramount Gold and Silver Corp. This type of investment offers more leverage than owning tangible gold. Buying coins and bullion is more conservative and less risky, but don’t settle for a gold certificate or other note over the physical ownership of the metal itself, and buy enough of it each month or at least quarterly to produce a significant investment.

About Richard Wilson